Digital Realty Trust to Acquire 375,500 Square Foot, 30 Mega Watt Enterprise-Quality Datacenter for Customer IT Operations in the High-Growth Singapore Market
SAN FRANCISCO, Nov. 18, 2010 /PRNewswire via COMTEX/ --
Digital Realty Trust, Inc. (NYSE:DLR, news, filings), a global wholesale datacenter provider, today announced that it entered into a definitive purchase agreement to acquire a new 375,500 square foot data center facility located in Singapore's International Business Park in the Jurong East area. The seven-story facility delivers up to 30 Mega Watts of 2N UPS capacity and a design that enables it to support both dedicated and shared customer environments. Located at 29A International Business Park on the western portion of the island, the building offers over 4.5 Mega Watts of IT load on each of its six (6) data center floors with the entire site supported by an N+2 continuous cooling architecture. Subject to various closing conditions, the acquisition is expected to close on or about November 22, 2010 and may be extended in limited circumstances. The purchase price will be approximately SGD170 million (subject to adjustment in limited circumstances).
"Singapore is one of Asia Pacific's leading financial and business centers, where many of our customers are looking to deploy their critical business applications. With limited enterprise quality datacenter supply in the market, this newly constructed, flagship facility will enable our customers to deliver their critical IT applications in a flexible, reliable and cost effective datacenter facility," said Michael Foust, Chief Executive Officer of Digital Realty Trust. "This new Digital Realty Trust wholesale datacenter will deliver substantial flexibility for customers, including corporate enterprise, colocation, and IT service providers, enabling them to maintain their applications using their own personnel and procedures. We expect the facility to be ready for customer occupancy beginning in the second quarter of 2011," added Mr. Foust.
According to Tier1 Research Senior Datacenter Analyst, Jason Schafer, "Singapore is well positioned to serve as the data center hub of the Asia Pacific region. We expect demand to outstrip supply of usable datacenter capacity in the Singapore market by an average of 11% per year for the foreseeable future. There exists a strong opportunity for wholesale and colocation providers alike to establish a strong data center platform to meet growing customer demand in Singapore."
"29A International Business Park datacenter provides customers with a flexible platform to support multiple types of IT deployments," said Jim Smith, Digital Realty Trust's Chief Technology Officer. "The entire facility has been built to ensure maximum reliability for customers with a 2N electrical distribution, an N+2 continuous cooling architecture, and 48 hours fuel and water storage for independent operation. The facility is designed to deliver an average of 4.5 Mega Watts of IT power to each of the six (6) floors dedicated for data center use, providing an uncommon degree of flexibility for customers. Each floor can serve as a single dedicated customer data center or support multiple customers in Digital Realty Trust's move-in ready Turn-Key Datacenters(R), featuring dedicated mechanical and electrical infrastructure, for immediate customer deployment."
"Entering the Singapore market with this acquisition reflects the importance of the Asia Pacific region to our customer's global datacenter needs," said Kris Kumar, Digital Realty Trust's Regional Head of Asia Pacific. "The site represents the first enterprise-quality, wholesale data center facility in Singapore, where our customers will experience the same high degree of service and support as they do in our North American and European facilities. Digital Realty Trust's 29A International Business Park datacenter will enable corporate customers and retail providers of colocation and managed services to deliver their critical business as well as cloud-based applications in a flexible, reliable and cost effective datacenter facility."
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing flexible, reliable and cost effective datacenter facilities. Digital Realty Trust's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 95 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.4 million square feet as of November 15, 2010, including 1.9 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 27 markets throughout Europe and North America. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the closing of the acquisition of the 29A International Business Park datacenter, when the facility will be ready for customer occupancy, and supply and demand in the Singapore market. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|For Additional Information:|
|A. William Stein||Pamela A. Matthews||Kris Kumar|
|Chief Financial Officer and||Director of Investor Relations||Regional Head Asia Pacific &|
|Chief Investment Officer||Digital Realty Trust||VP Corporate Development|
|Digital Realty Trust||+1 415-738-6532||Digital Realty Trust|
|+1 415-738-6500||+65 6597 7088|
SOURCE Digital Realty Trust, Inc.